China Stock Market

ICYMI - China's industrial profits fell 2.3% in 2023

• A heavy lead in from after-hours Wall Street trade doesn't auger well for Chinese markets today

China: Suzhou, most populous city in Jiangsu province, removed all home buying restriction

Wages in China are falling, fast. Q4 average salaries in 38 major cities fell 1.3% y/y.

PBOC sets USD/ CNY mid-point today at 7.1055 (vs. estimate at 7.1763)

• PBOC CNY reference rate setting for the trading session ahead.

PBOC is expected to set the USD/CNY reference rate at 7.1763 – Reuters estimate

• The rate will be many figures below this model estimate

Chinese authorities urgency to prop up the stock market should support AUD

Confirmed - A HK court has ordered the liquidation of China Evergrande Group

China plans to incorporate 3 of its big managers of bad debts into sovereign wealth fund

PBOC sets USD/ CNY reference rate for today at 7.1097 (vs. estimate at 7.1785)

• PBOC CNY reference rate setting for the trading session ahead.

China property developer Evergrande faces imminent liquidation

• A fire sale is not going to be seen as supportive for China assets. But, perhaps the capitulation will end up helping.

PBOC is expected to set the USD/CNY reference rate at 7.1785 – Reuters estimate

• The actual rate will be well under this model estimate as the PBOC seeks to prop up the embattled yuan

More China tightens short selling restrictions - bans lending of restricted shares

• Further tightening short selling restrictions to boost market stability.

Weekend China news - reports of further short selling restrictions to be imposed in March

Onshore yuan looks set for its first weekly gain in three weeks

• The week's trade is not over yet, of course

PBoC, government stimulus in China are merely a "painkiller, not a cure" for the economy

• "Authorities will likely launch more measures"